A band is a partnership, which is a business in which two or more people share ownership.[1] Ideally, you created a “band agreement” when you formed the band. This agreement should have described your right to royalty payments after you leave. However, many bands fail to create a band agreement ahead of time, so you will need to negotiate royalty payments before you exit the band. Because leaving a band is a lot like getting a divorce, you should have a qualified music attorney help you in the negotiations.

Steps

Part 1

Reviewing Your Legal Agreements

1

Find your band agreement. Ideally, you would have signed a partnership agreement or an operating agreement when you formed the band or at any point before you released music. If you did, then this agreement will determine what your rights are after you leave the band.[2]

You should find your agreement and read it. The band agreement should state whether you are entitled to royalties after you leave.[3]

It is not unusual for the band agreement to state that you give up all royalties if you leave the band.[4]

Also check if the agreement requires that you do anything in order to leave the band. For example, it might provide steps you need to take. You should follow all steps spelled out in the band agreement.

2

Find your recording contract. Your music may also be covered by a recording contract. In this situation, the record company holds the copyrights to the music. Accordingly, whether you will get a royalty when you leave the band will depend on what is in the recording contract.

Your band manager should have a copy of the recording contract. If not, you will have to contact the record company and ask for a copy.

3

Meet with a lawyer. You might have a hard time understanding your band agreement or recording contract. Accordingly, you should schedule a meeting with a music lawyer to talk about your rights. He or she can read the agreement and advise you about whether it protects your right to royalties if you leave the band.

You can get a referral to a lawyer by contacting your state or local bar association.[5] Also see Hire a Music Attorney for additional tips.

Once you have found a music attorney, schedule a meeting with him or her. Ask ahead of time how much the attorney charges.

4

Check your state’s law. If you didn’t have a written partnership or band agreement, then your state partnership law will provide default rules.[6] In the absence of any written agreement defining your relationship, then your band is probably a partnership. Each state has adopted rules for partnerships.

Generally, when you leave a partnership, you have no automatic right to royalties. However, you could still negotiate an agreement for royalties before leaving.

Part 2

Negotiating an Agreement for Royalties

1

Identify revenue streams. To prepare properly for negotiations, you need to identify all of the revenue streams related to your music. For example, you should try to get ongoing payment from the band for the following:[7]

Record royalties: your share of royalties from sales and licensing of recordings involving your performances.

Publishing royalties: money earned from compositions you helped author, in whole or in part.

Merchandise income: income earned from products manufactured by the band or under a license, especially where the item includes your name or likeness.

2

Prepare for negotiations. You shouldn’t go into negotiations blind. Instead, you should think about what your strengths are in negotiation. Is there any reason the band should give you royalty payments after you leave? For example, you might hold the copyright on several songs the band performs. In this case, you can agree to let the band continue to perform the songs but, in exchange, you get royalties from the performances and from any recordings sold.

Also think about the minimum you are willing to settle for. Negotiations are voluntary, and you can walk away if the other side can’t meet your minimum. This is called your “walk away” point, and you should know it before going into negotiations.[8]

Talk with your music attorney about what a fair royalty would be. If you leave, then the band will probably have to hire someone to replace you. This person will probably want a cut of the royalties as well, so it might not be realistic to insist that you get an equal share of the royalties after leaving.

3

Negotiate with the band. You should let your music attorney handle most of the negotiations, which will probably take place at a lawyer’s office. Feel free to attend the negotiations and share with your lawyer any input that you have.

Remember that your lawyer is ethically obligated to notify you of any settlement offer. Your lawyer also must get your permission before accepting or rejecting a settlement.[9]

4

Sign an agreement. If you reach an agreement on royalties, then you should draft a settlement agreement. This agreement is a contract between you and the band or between you and the record company. Your lawyer should draft the agreement or look over the agreement drafted by the other side’s lawyer.

If either side breaks the settlement agreement, then you can sue to enforce the settlement agreement.[10]

5

Consider a lawsuit if negotiations fail. Your attempt to negotiate royalties may very well be unsuccessful. The remaining band members have little incentive to try and give you money in the absence of a band agreement that grants you the right to royalty payments. A recording company will likely be equally hostile. You should talk to your lawyer about what other options you have if your negotiations fail.

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Tips

If your band is just forming, then make sure to include a clause in your band agreement that states departing members are entitled to royalties. However, you need to realize that all members who leave will be entitled to the royalties, not just you.